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  • Category: Miscellaneous

    Why the GDP of certain countries is very strong and some countries like India is weak?

    The strength of a country lies in its GDP. There are some countries in the world whose GDP is very strong even after any kind of complication they face. At the present USA, China, Japan, Germany, France, Brazil, the UK, etc. with strong GDPs. On factors, the GDP of a country show an upward trend? If manpower is the reason for China's high GDP but countries like the USA have less manpower? Are efficient governments are the reason for the increased GDP of a country? If we consider this point it is the weak and inefficient governments are the reason for our low GDP? We think Indian people are hard-working and proactive in their assigned duties. Then what is the reason for the low GDP of the country of this world with immense manpower?
  • #719819
    I do not understand the author's view of strong GDP and weak GDP. What is the meaning of strong GDP? If he means Strong GDP as GDP growth rate, then India was second only to China in GDP growth rate before the Covid 19 pandemic. If he means Strong GDP as resilience of GDP during the pandemic, then India recorded least resilience. This may be because of harsh lock down, which the other countries did not follow. When the lock down got lifted, the GDP bounced back very fast in India. The other reason for resilience of GDP of other countries may be due to automation, in which India somewhat lags behind.

  • #719822
    Strong GDP in the sense is not much fluctuating or falling down below average and is always showing an uptrend. Before Covid-19 itself the trend of GDP in India is moving down drastically.

  • #719838
    In that sense, even the China GDP is also in the downtrend from 2010. Then how can we say it as Strong GDP and India GDP as weak GDP. Uptrends and downtrends in GDP happens throughout the world and it is not specific to India.

  • #719846
    The GDP of any country depends on inclusive performance of all the sectors and equal participation and contribution from the people. If India could register lower GDP because we have still the developing country and our works are either held up or in slow progress. The work force in factories are not that sincere to give the formidable output when compared to the take home salary and that reflects huge on the performance over all. When the strike happens the entire work force participates thereby jeopardizing the very chance of development. Where as in China the workers also protest there. For example in a foot wear factory if the workers were not happy they keep on producing one foot wear and thus the factory need to address their demand and they have not stopped the production as done in India.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #719850
    GDP is an economic indicator which shows the progress of a country. A rising GDP is generally a good sign. At the same time a decreasing trend shows signs of recession. It is defined as the total value of all the material and services exchanged during a period that is generally one year time. So a good GDP means manufacturing is in full swing and people have money to afford the items and services. It is a prosperous situation.

    Sometimes there are some expenses which make GDP to appear high but that is misleading. For example after a disaster there is so much to be spent on reconstruction. That would inflate GDP though that is not much indicative of overall progress and has gone in revival only. Likewise there are many expenses which can make GDP as a misleading entity.

    Some economist feel that we should use GPI (genuine progress indicator) in place of GDP. In GPI we remove all negative contributions and that gives a realistic picture. Of course, same thing can be done with GDP also if care is taken to remove the ambiguous expenditures from it. We are not aware as how GDP is currently being calculated so we do not know whether it indicates the situation very precisely or not.

    Knowledge is power.

  • #719926
    GDP is an indicator based on many factors and in general it denotes that there is good manufacturing going on in that country and items are also bought by the people and the surplus is getting exported to other countries earning valuable foreign exchange. Apart from that it also says that people are having good purchasing power and expenditure on entertainment and amusement is also at high. From this it is very clear that developed and low population countries are having a good GDP. The countries which are not able to have good sales of items and circulation of money fare poor in GDP scale.
    Thoughts exchanged is knowledge gained.


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